Koninklijke DSM N.V. (Royal DSM, commonly known as DSM), is a Dutch
multinational corporation
A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...
active in the fields of health, nutrition and materials. Headquartered in
Heerlen, at the end of 2017 DSM employed 21,054 people in approximately 50 countries and posted net
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in r ...
of €8.632 billion in 2018
and €9.204 billion in 2021.
History
DSM was formed by the Dutch state in 1902 to
mine coal reserves in southern
Limburg and although the company had diversified into
commodity chemicals
Commodity chemicals (or bulk commodities or bulk chemicals) are a group of chemicals that are made on a very large scale to satisfy global markets. The average prices of commodity chemicals are regularly published in the chemical trade magazines an ...
and
petrochemical
Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewabl ...
s by 1973 when the last mine closed, DSM retains a link to its origins by continuing to use the initials, originally an abbreviation for Dutch State Mines, to this day.
During
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the World War II by country, vast majority of the world's countries—including all of the great power ...
researchers worked on
penicillin
Penicillins (P, PCN or PEN) are a group of β-lactam antibiotics originally obtained from '' Penicillium'' moulds, principally '' P. chrysogenum'' and '' P. rubens''. Most penicillins in clinical use are synthesised by P. chrysogenum usin ...
. The code name Bacinol was used to keep the research secret from the
Germans
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. The research was done at the company Nederlandsche Gist- en Spiritusfabriek, Dutch Yeast and Spirits Factory, later becoming DSM Sinochem Pharmaceuticals, in
Delft
Delft () is a city and municipality in the province of South Holland, Netherlands. It is located between Rotterdam, to the southeast, and The Hague, to the northwest. Together with them, it is part of both the Rotterdam–The Hague metropolita ...
.
In 1989 the government floated 70% of its shares in the company on the Amsterdam Stock Exchange (now Euronext Amsterdam) with the remaining 30% floated in 1996, thereby completing DSM's privatization. The 21st century has seen DSM follow successive five-year strategic periods of portfolio transformation and internationalization involving acquisitions, divestments and partnerships.
In 2001 48% of DSM's workforce was based in the Netherlands; in 2017 this was 18%.
Acquisitions
* 1998: Gist-brocades (food ingredients, pharmaceuticals, yeast- and enzyme-based production process technology).
* 2000: Catalytica Pharmaceuticals (pharmaceutical intermediates).
* 2003: Roche's vitamin division.
* 2005: NeoResins (water-based coating resins).
* 2011: Martek (nutritional products derived from
microalgae and
fermentation technology).
* 2011: Vitatene (natural carotenoids derived from fermentation of
Blakeslea trispora fungus).
* 2012: Verenium's food enzymes and oilseed processing business.
* 2012: Kensey Nash (biomedical regenerative medicine).
* 2012: Ocean Nutrition Canada (fish-oil derived nutritional products).
* 2012: Cargill’s cultures and enzymes business.
* 2012: Fortitech (customized nutrient premixes).
* 2013: Unitech (
micronutrient premixes and
macronutrient
A nutrient is a substance used by an organism to survive, grow, and reproduce. The requirement for dietary nutrient intake applies to animals, plants, fungi, and protists. Nutrients can be incorporated into cells for metabolic purposes or excr ...
blends).
* 2013: Andre Pectin (food hydrocolloids).
* 2013: Tortuga (nutritional supplements for pasture raised cattle).
* 2015: Åland (vitamin C).
* 2015: Cubic Tech (high-performance, ultra-lightweight, flexible laminates and fabrics).
* 2020: Erber Group - Biomin and Romer Labs (mycotoxin and allergen tests in food).
* 2020: Glycom (
human milk oligosaccharide
Human milk oligosaccharides (HMOs), also known as human milk glycans, are short polymers of simple sugars that can be found in high concentrations in human breast milk. Human milk oligosaccharides promote the development of the immune system, ca ...
s, infant formula supplement).
* 2021:
Amyris Flavor & Fragrance business.
Divestments
* 2002:
Petrochemical
Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewabl ...
s (
hydrocarbon
In organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons are examples of group 14 hydrides. Hydrocarbons are generally colourless and hydrophobic, and their odors are usually weak or ...
s,
polyethylene
Polyethylene or polythene (abbreviated PE; IUPAC name polyethene or poly(methylene)) is the most commonly produced plastic. It is a polymer, primarily used for packaging ( plastic bags, plastic films, geomembranes and containers including b ...
s,
polypropylene
Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer propylene.
Polypropylene
belongs to the group of polyolefins a ...
s,
polyolefins).
* 2001:
Quinine
Quinine is a medication used to treat malaria and babesiosis. This includes the treatment of malaria due to '' Plasmodium falciparum'' that is resistant to chloroquine when artesunate is not available. While sometimes used for nocturnal leg ...
and Cinchona Alcaloids to
Buchler GmbH Buchler is a German surname
Personal names in German-speaking Europe consist of one or several given names (''Vorname'', plural ''Vornamen'') and a surname (''Nachname, Familienname'').
The ''Vorname'' is usually gender-specific. A name is usually ...
.
* 2010:
Ammonia
Ammonia is an inorganic compound of nitrogen and hydrogen with the formula . A stable binary hydride, and the simplest pnictogen hydride, ammonia is a colourless gas with a distinct pungent smell. Biologically, it is a common nitrogenous ...
,
fertilizer
A fertilizer (American English) or fertiliser (British English; see spelling differences) is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from ...
and
melamine.
* 2010:
Thermoplastic elastomers.
* 2010:
EP(D)M rubber.
* 2010:
Toluene
Toluene (), also known as toluol (), is a substituted aromatic hydrocarbon. It is a colorless, water-insoluble liquid with the smell associated with paint thinners. It is a mono-substituted benzene derivative, consisting of a methyl group (CH3) ...
oxidation.
* 2017:
Patheon
Patheon is a service brand within Thermo Fisher Scientific’s brand portfolio. Contract development and manufacturing organization (CDMO) services offered under the Patheon brand include small molecule API, biologics, viral vectors, cGMP plasmids ...
, a pharmaceutical
contract development and manufacturing organization (CDMO) joint venture with
JLL Partners, to
Thermo Fisher Scientific Inc
Thermo Fisher Scientific Inc. is an American supplier of scientific instrumentation, reagents and consumables, and software services. Based in Waltham, Massachusetts, Thermo Fisher was formed through the Mergers and acquisitions, merger of Ther ...
.
* 2021: Resins & Functional Materials business to Covestro AG.
* 2022: Protective Materials business to Avient Corporation
* 2022: Engineering Materials business to Advent International and LANXESS
Partnerships
DSM has stated that these partnerships have been created with a view to the company's ultimate exit from the businesses concerned.
* 2009: DSM and
NCPC sign contracts to establish nutrition and
anti-infectives
joint venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...
s in China
* 2011: DSM Sinochem Pharmaceuticals, joint venture (DSM 50%) with the
Sinochem Group. DSM Sinochem Pharmaceuticals is a manufacturer of generic anti-infective molecules.
* 2015: ChemicaInvest, joint venture (DSM 35%) with
CVC Capital Partners. ChemicaInvest consists of three business units; Aliancys (composite resins), AnQore (
acrylonitrile
Acrylonitrile is an organic compound with the formula and the structure . It is a colorless, volatile liquid although commercial samples can be yellow due to impurities. It has a pungent odor of garlic or onions. In terms of its molecula ...
) and Fibrant (
caprolactam
Caprolactam (CPL) is an organic compound with the formula (CH2)5C(O)NH. This colourless solid is a lactam (a cyclic amide) of caproic acid. Global demand for this compound is approximately five million tons per year, and the vast majority is us ...
).
DSM has applied
IFRS 11 to its associates and joint ventures since 2013.
Organization
DSM's five business groups are clustered according to product and market combinations, with the business group directors reporting directly to the Managing Board. Since 2015, DSM's activities have been grouped into three clusters: Nutrition, Materials and Innovation Center.
Nutrition
The Nutrition cluster is made up of DSM Nutritional Products and DSM Food Specialties. DSM Nutritional Products produces essential nutrients such as synthetic
vitamins,
carotenoids,
human milk oligosaccharide
Human milk oligosaccharides (HMOs), also known as human milk glycans, are short polymers of simple sugars that can be found in high concentrations in human breast milk. Human milk oligosaccharides promote the development of the immune system, ca ...
s, nutritional
lipid
Lipids are a broad group of naturally-occurring molecules which includes fats, waxes, sterols, fat-soluble vitamins (such as vitamins A, D, E and K), monoglycerides, diglycerides, phospholipids, and others. The functions of lipids in ...
s and other ingredients for the feed, food, pharmaceutical and
personal care industries. DSM Food Specialties manufactures food
enzyme
Enzymes () are proteins that act as biological catalysts by accelerating chemical reactions. The molecules upon which enzymes may act are called substrates, and the enzyme converts the substrates into different molecules known as products ...
s,
cultures,
yeast extracts,
savory flavors,
hydrocolloids and other specialty ingredients for the
dairy,
baking,
beverage and savory segments. DSM also manufacturers a novel cattle feed additive (Bovaer) to reduce
methane
Methane ( , ) is a chemical compound with the chemical formula (one carbon atom bonded to four hydrogen atoms). It is a group-14 hydride, the simplest alkane, and the main constituent of natural gas. The relative abundance of methane ...
production from dairy production. In 2021, DSM was ranked 6th on FoodTalks' list of Top 30 Global Probiotic Food Ingredient Companies.
Materials
The Materials cluster is made up of DSM Engineering Materials, DSM Protective Materials and DSM Resins & Functional Materials. DSM Engineering Materials’
specialty plastics are used in components for the
electrical and
electronics
The field of electronics is a branch of physics and electrical engineering that deals with the emission, behaviour and effects of electrons using electronic devices. Electronics uses active devices to control electron flow by amplification ...
,
automotive, flexible food
packaging and
consumer goods
A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike a intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good, b ...
industries. DSM Protective Materials is the inventor, manufacturer and marketer of
Dyneema. DSM Resins & Functional Materials manufacture
resin
In polymer chemistry and materials science, resin is a solid or highly viscous substance of plant or synthetic origin that is typically convertible into polymers. Resins are usually mixtures of organic compounds. This article focuses on nat ...
s solutions for
paints,
inks,
stereolithography, and industrial and
optical fiber
An optical fiber, or optical fibre in Commonwealth English, is a flexible, transparent fiber made by drawing glass ( silica) or plastic to a diameter slightly thicker than that of a human hair
Hair is a protein filament that grows ...
coatings.
Innovation Center
In addition to the role of supporting innovation in the businesses and DSM's venturing activities, the Innovation Center is responsible for the company's ‘Emerging Business Areas’; DSM Biomedical (
biomaterial
A biomaterial is a substance that has been engineered to interact with biological systems for a medical purpose, either a therapeutic (treat, augment, repair, or replace a tissue function of the body) or a diagnostic one. As a science, biomateria ...
s and regenerative medical devices), DSM Bio-based Products & Services (
biomass-conversion technology) and DSM Advanced Solar (
AR-coatings and
Photovoltaic-films for
solar modules
A solar cell panel, solar electric panel, photo-voltaic (PV) module, PV panel or solar panel is an assembly of photovoltaic solar cells mounted in a (usually rectangular) frame, and a neatly organised collection of PV panels is called a photo ...
).
Current strategy
Financial targets
In November 2015 DSM announced that up to 2018 it was targeting a high single-digit annual percentage increase in
EBITDA and a high double-digit annual basis point increase in
Return on Capital Employed (ROCE). It will focus on organic sales growth, reducing costs and strict capital allocation and does not expect to engage in large acquisitions in the near future.
Environmental targets
Within its corporate strategy the company also defines long-term sustainability aspirations, which include targets to improve the eco-efficiency of its operations. In November 2015 DSM set the following environmental reduction targets:
Since 2010, the Short
- and
Long-Term Incentive elements of the remuneration of DSM's Managing Board and executive bonuses relate to the company's financial and environmental performance in equal measure. Since 2004
DSM has been either the Materials
industry group leader, (7 years) or among the leaders in the annual
Dow Jones Sustainability Index.
Shares
DSM is listed on
Euronext Amsterdam and is a constituent of the
AEX index
The AEX index, derived from Amsterdam Exchange index, is a stock market index composed of Dutch companies that trade on Euronext Amsterdam, formerly known as the ''Amsterdam Stock Exchange''. Started in 1983, the index is composed of a maximum ...
. Options on DSM shares are traded on the European Option Exchange in Amsterdam. In the US, a sponsored unlisted
American Depositary Receipts (ADR) programme is provided by Deutsche Bank Trust Co. Americas. These ADR's are listed on the
OTCQX
OTC Markets Group (previously known as Pink Sheets) is an American financial market providing price and liquidity information for almost 10,000 over-the-counter (OTC) securities. The group has its headquarters in New York City. OTC-traded sec ...
International Premier Marketplace.
References
{{DEFAULTSORT:Dsm (Company)
Chemical companies of the Netherlands
Multinational companies headquartered in the Netherlands
Coal companies of the Netherlands
Multinational companies
Companies based in Limburg (Netherlands)
South Limburg (Netherlands)
Buildings and structures in Heerlen
Companies listed on Euronext Amsterdam
Chemical companies established in 1902